(2015) Volkswagen is right in the middle of a corporate scandal of epic proportions. The German auto giant has been caught lying, on a spectacular scale. 11 million of its ‘clean’ diesel engine cars were equipped with software deliberately programmed to cheat pollution tests. A blatant con that is highly illegal. In Australia, 10 Volkswagen models have now been suspended from sale, and 77-thousand vehicles face recall at the very least. Volkswagen’s ruthless drive to be world number one, hid a dirty secret – diesel engines that couldn’t deliver on high performance and still meet environmental standards. Michael Usher goes inside the Volkswagen lie, and meets the small band of engineering students who’ve brought a giant to its knees.
Page Descreption
Understand what constitutes a red flag in various contexts,
from relationships to business,
and learn how to identify
and address potential issues early on.
A flag used as a sign of danger:
You’re not allowed to swim when the red flag is flying.
Cambridge Dictionary
Red Flag: A warning signal pointing to a potential problem or threat that warants further investigation.
Een waarschuwingssignaal dat wijst op een potentieel probleem of bedreiging die nader onderzoek rechtvaardigt.
A Red Flag
Raphael Rowe’s story is a powerful testament to the resilience of the human spirit and the relentless pursuit of justice. Wrongly convicted for crimes he didn’t commit, Rowe spent 12 years behind bars before finally proving his innocence. His case raised critical questions about systemic failures in the justice system and the devastating impact of wrongful convictions.
In the videos below, we explore his journey, the pivotal moments that led to his exoneration, and the lessons we can learn about the flaws in legal systems that prioritize conviction over truth. These stories serve as a red flag, reminding us of the importance of fairness, accountability, and the courage to challenge injustice.
1 Life After My Lockdown | Raphael Rowe | TEDxWarwick
25 mrt 2021
Raphael Rowe tells the story of how he spent 12 years in prison for murder and robbery – crimes he did not commit. After over a decade of psychological trauma, Rowe explores the power of hope in the darkest of times. Having eventually being found to be not guilty, he was released from prison, and dedicated his life to criminal justice reform. The talk goes on to argue that despite the tragic events of the pandemic, hope is crucial to carry us through to better times. Raphael Rowe is an investigative journalist who works with the BBC, Netflix and Back The Brave. He is best known as the presenter of the Netflix docuseries ‘Inside the World’s Toughest Prisons’, and also works on ‘The One Show’ and ‘Sunday Morning Live’. He is the author of the memoir and autobiography ‘Notorious’. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx
2 UK Exclusive: Behind The Scenes with Netflix Star Raphael Rowe | Inside the World’s Toughest Prisons
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7 aug 2023 UNITED ARAB EMIRATES
It’s finally here, folks: The Spencer Lodge Podcast goes to the United Kingdom! Kickstarting this exclusive series is a fascinating interview with none other than Netflix documentary sensation, Raphael Rowe – the host of the award-winning documentary, Inside the World’s Toughest Prisons. From Prisoner to Presenter, Raphael Rowe shares his heart-wrenching story and goes into the gruesome details of his 12-years behind bars, after being convicted for a murder he did not commit. Throughout this episode, Raphael talks about the prison system, why certain people end up in prison, and why prisoners need more compassion. Raphael also takes us through the most traumatic time of his life, sharing the impact his time in prison had on him and his family, how he recovered his life after being released, and how he became a Netflix documentary star. Tune in to listen to Raphael’s story, learn more about his foundation and discover what really goes on in the world’s toughest prisons.
Discussion points:
03:15 Reliving Raphael’s trauma
05:30 Does poverty lead to criminality?
06:30 Why people end up in prison
08:00 Types of prisoners
09:35 About Raphael
18:50 The campaign Raphael’s release
25:05 The impact it had on his family
35:55 Life after prison
49:00 Why prisoners need compassion
52:00 About Raphael’s Netflix show, Inside the World’s Toughest Prisons
01:03:05 About the Raphael Rowe Foundation
3 The Global Prison Paradox – Raphael Rowe & David Skarbek
In première gegaan op 28 okt 2021
In his memoir, Notorious, Raphael Rowe details the twelve years he spent wrongly incarcerated for crimes including murder. After overturning his convictions in 2000, he became the first person of mixed race with dreadlocks to report for the BBC. Rowe is now the host of Netflix’s docuseries Inside the World’s Toughest Prisons bringing his understanding of the physical and emotional scars prisons can inflict on human beings from high tech lockdowns in Greenland to the dangerously overcrowded and underfunded prisons of the Philippines and South Africa. Rowe will be in conversation with David Skarbek, author of The Puzzle of Prison Order: Why Life Behind Bars Varies Around the World. Called “An illuminating work of much interest to students of crime and punishment” by Kirkus, Skarbek’s book digs behind the scenes of global prisons, studying the balance of power and hierarchy behind bars and how that affects prisoners.
Inside the World’s Toughest Prisons materials used with permission of Raphael Rowe. Title slide images from xiaoyi from Pexels and Ichigo121212 and Jody Davis from Pixabay. Intro music is Tequila Moonrise – Sunburnt Werewolf. Transition music is Humanfobia – Pastel Goth Ghost from Freemusicarchive.org
4 Raphael Rowe.
11 jun 2019
Raphael Rowe.
9 dec 2015
Please listen and watch to more video’s by
Raphael Rowe is a British journalist and television presenter who gained attention for being wrongfully convicted and subsequently exonerated. Here are key points about his wrongful conviction:
Arrest and Conviction:
- In 1990, Raphael Rowe, along with two other men, was arrested for the murder of Peter Hurburgh and the attempted murder of his daughter in a violent attack in Surrey, England.
- Rowe and his co-defendants were convicted in 1992 and sentenced to life in prison.
Investigation and Trial:
- The prosecution’s case relied on circumstantial evidence, including alleged eyewitness accounts and the defendants’ supposed association with a criminal organization.
- There were concerns about the reliability of the evidence presented during the trial.
Claims of Innocence:
- Rowe maintained his innocence throughout the trial and during his time in prison.
- He consistently argued that he had been wrongly convicted based on flawed evidence and a lack of a fair trial.
Journalism Career:
- While in prison, Rowe developed an interest in journalism and worked towards becoming a journalist.
- He wrote articles and produced documentaries from inside the prison, highlighting issues related to wrongful convictions and the criminal justice system.
Appeals and Exoneration:
- Rowe and his co-defendants pursued multiple appeals over the years, presenting new evidence and arguing that their convictions were unsafe.
- In 2000, the Court of Appeal quashed their convictions, citing concerns about the reliability of the evidence.
Compensation and Aftermath:
- After his release, Rowe continued his career in journalism and became known for his work on criminal justice issues.
- He also pursued compensation for the years he spent wrongfully imprisoned.
Advocacy for Criminal Justice Reform:
- Raphael Rowe has been an advocate for criminal justice reform, speaking out about the flaws in the legal system and the potential for wrongful convictions.
Rowe’s case serves as an example of the challenges in the criminal justice system, including issues related to evidence, witness testimony, and the potential for wrongful convictions.
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7 ‘red flags’ for fraud and corruption
From the point of view of organisational culture, there are seven signals that can reveal an increased risk of integrity violations, such as corruption and fraud, within an organisation. We have established this based on an analysis of twenty-five cases in which violations occurred. The flaws in an organisational culture can ensure that violations take place sooner, are noticed less quickly, do not lead to countermeasures and can therefore develop. These red flags are discussed in this article. Knowledge of the red flags enables organisations to identify integrity risks at an early stage and provides input for the moral development of the organisation.
7 red flags: increased risk of fraud and corruption ■ Alex Straathof & Erik Essen & Wouter Smit
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7 ‘red flags’ voor fraude en corruptie
Vanuit de organisatiecultuur gezien zijn er zeven signalen die een verhoogd risico op integriteitsschendingen, zoals corruptie en fraude, binnen een organisatie aan het licht kunnen brengen. Dat stellen wij vast op basis van een analyse van vijfentwintig cases waarin zich schendingen voordeden. De weeffouten in een organisatiecultuur kunnen ervoor zorgen dat schendingen eerder plaatsvinden, minder snel worden opgemerkt, niet leiden tot tegenmaatregelen en zich daardoor kunnen ontwikkelen. Deze red flags worden in dit artikel besproken. Kennis van de red flags stelt organisaties in staat integriteitsrisico’s vroegtijdig te signaleren en geeft input aan de morele ontwikkeling van de organisatie.
7 red flags: verhoogde kans op fraude en corruptie ■ Alex Straathof & Erik Essen & Wouter Smit
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For decades, Volkswagen was known as a company with a reliable image and robust cars. Until September 2015, when it became known that emissions tests had been manipulated with sham software. The company’s reliable exterior proved to be in stark contrast to its fraud-prone corporate culture. Managers hardly dared to approach the demanding and hard-line chairman of the board, Winterkorn, and certainly not when it came to bad news. Volkswagen was characterised by a culture of fear. Employees prioritised job retention and meeting the demands of higher management. Ethical considerations turned out to be of less importance here. Raising sensitive issues and critical dissent were not tolerated and could even lead to dismissal. Internal problems, such as the enormous performance pressure, therefore remained under the radar. The top management’s focus on results translated into aggressive growth strategies and unrealistically high targets. Signs of software manipulation did exist internally, but were ignored due to the closed nature of the culture. The groupthink that was present, combined with a strong power distance, made employees choose not to report it, to downplay the signals of manipulation of the emission tests or simply to deny them.
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Volkswagen stond decennialang bekend als een bedrijf met een betrouwbaar imago en robuuste auto’s. Tot september 2015, toen bekend werd dat met sjoemelsoftware emissietests zijn gemanipuleerd. De betrouwbare buitenkant van het bedrijf bleek in schril contrast te staan met de fraudegevoelige bedrijfscultuur. Managers durfden de veeleisende en bikkelharde bestuursvoorzitter Winterkorn amper te benaderen en al helemaal niet als het op slecht nieuws aankwam. Volkswagen werd gekenmerkt door een angstcultuur. Medewerkers stelden baanbehoud en het voldoen aan de eisen van het hogere management voorop. Hierbij bleken ethische overwegingen van mindere waarde. Het aankaarten van gevoelige onderwerpen en kritisch tegengeluid werden niet geduld en konden zelfs tot ontslag leiden. De interne problematiek, zoals de enorme prestatiedruk, bleef daardoor onder de radar. De resultaatgerichtheid van de top vertaalde zich in agressieve groeistrategieën en onrealistisch hoge targets. Signalen van softwaremanipulatie waren er intern wel degelijk maar werden, door de geslotenheid die de cultuur kenmerkte, genegeerd. De aanwezige groupthink, in combinatie met een sterke machtsafstand, maakte dat medewerkers ervoor kozen hier geen melding van te maken, de signalen van manipulatie van de emissietests te downplayen of domweg te ontkennen.
5 What the VW scandal means for diesel cars – Newsnight
Regulators around the world and Volkswagen’s shareholders have now clocked the seriousness of the crisis that started enveloping the company. The admission that it had installed so-called “defeat software” on some of its cars to cheat US emissions tests has escalated, spreading to countries beyond the US and potentially to companies beyond VW. Here’s our Technology Editor David Grossman report, and Evan Davis in discussion with Professor David Bailey from Aston University.
Some general information about the Volkswagen (VW) scandal and its implications for diesel cars.
In September 2015, it was revealed that VW had installed illegal software in their diesel vehicles, which allowed them to cheat emissions tests. The software was designed to detect when a vehicle was undergoing emissions testing and to reduce the emissions output to meet the required standards. However, during normal driving conditions, the vehicles emitted up to 40 times more nitrogen oxide than allowed by law.
The scandal had significant implications for VW and the wider automotive industry. VW was forced to pay billions of dollars in fines and compensation to customers, and several high-level executives were indicted and sentenced to prison. The scandal also led to increased scrutiny of diesel emissions and a shift towards electric vehicles.
The scandal highlighted the importance of emissions testing and regulation and the need for greater transparency and accountability in the automotive industry. It also raised questions about the environmental impact of diesel cars and their role in the transition to a more sustainable future.
6 German auto giant Volkswagen caught lying on a spectacular scale | 60 Minutes Australia
7 Simon Brodkin Epic Prank Sabotaging Volkswagen Motor Show After Emissions Scandal! | All 4
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7 ‘red flags’ for fraud and corruption
In recent years, various organisations have been embarrassed by fraud and corruption scandals. The diversity of organisations involved is striking. It is not only about the fast boys of the financial world and the real estate sector; it is also about sports clubs and organisations with public tasks, such as housing, care and the supervision thereof. Despite the large differences, similar patterns can be recognised. These patterns become visible by making an analysis of the inner world of the organisation, the organisational culture. Organisational culture involves the shared values, beliefs and behaviours within the organisation that are shaped by the group dynamics and (in)formal power relations present (Schein, 1992; Straathof, 2009).
For this study, cultural analyses were performed on twenty-five organisations where a violation had taken place. What emerged? The analysis of Volkswagen’s organisational culture shows striking similarities with other organisations where violations took place. Comparisons between twenty-five separate case analyses led to the identification of seven cultural flaws for the occurrence, continuation and spread of integrity violations. These cultural aberrations – defined as ‘red flags’ – are explained in this article. The cases vary widely in terms of organisational form, size and type of organisation (profit and non-profit). This implies that red flags are not tied to a specific organisation or context, but have significance for different organisations in different environments. Knowledge of the red flags is important in order to identify integrity risks at an early stage, so that further escalation can be prevented with appropriate measures. The red flags are shown and defined in the figure and accompanying text below, with an example being worked out first.
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7 ‘red flags’ voor fraude en corruptie
De laatste jaren zijn diverse organisaties in verlegenheid gebracht door fraude- en corruptieschandalen. Opvallend is de diversiteit aan betrokken organisaties. Het gaat niet alleen om snelle jongens van de financiële wereld en de vastgoedsector; het speelt ook in sportclubs en organisaties met publieke taken, zoals huisvesting, zorg en het toezicht daarop. Ondanks de grote verschillen zijn er overeenkomstige patronen te herkennen. Deze patronen worden zichtbaar door een analyse te maken van de binnenwereld van de organisatie, de organisatiecultuur. Organisatiecultuur behelst de gedeelde waarden, overtuigingen en gedragingen binnen de organisatie die worden vormgegeven door de aanwezige groepsdynamiek en (in)formele machtsverhoudingen (Schein, 1992; Straathof, 2009).
Voor dit onderzoek zijn cultuuranalyses verricht naar vijfentwintig organisaties waar een schending heeft plaatsgevonden. Wat blijkt? De analyse van de organisatiecultuur van Volkswagen vertoont opvallende gelijkenissen met andere organisaties waar schendingen plaatsvonden. Vergelijkingen tussen vijfentwintig afzonderlijke case- analyses hebben geleid tot de vaststelling van zeven culturele weeffouten voor het ontstaan, voortduren en verbreiden van integriteitsschendingen. Deze culturele weeffouten – gedefinieerd als ‘red flags’ – worden in dit artikel toegelicht. De cases variëren sterk wat betreft organisatievorm, -grootte en type organisatie (profit en non- profit). Dit impliceert dat red flags niet gebonden zijn aan een specifieke organisatie of context, maar voor verschillende organisaties in verschillende omgevingen betekenis hebben. Kennis van de red flags is van belang om integriteitsrisico’s vroegtijdig te kunnen signaleren, zodat met gepaste maatregelen verdere escalatie kan worden voorkomen. De red flags zijn weergegeven en gedefinieerd in de onderstaande figuur en bijbehorende tekst, waarbij steeds eerst een voorbeeld wordt uitgewerkt.
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1. Power distance: Large difference in perceived power between (groups of) people. Influence is highly concentrated and those in power put pressure on employees to achieve goals without tolerating dissent.
2. Isolation: An organisational unit functions physically, emotionally or socially separated from other organisational units. Group norms can slip away and are imitated in behaviour by limited present correction mechanisms from the environment.
3. Secrecy constructs: Actors involved in a breach use the lack of openness and transparency to conceal non-independent actions and avoid the appearance of such actions. Information sharing is very limited.
4. Ring of silence: People have knowledge or signals about violations, but shield this from other employees. The limited room for discussion or critical questions means that (morally) sensitive subjects and conflicts are generally avoided.
5. Incorrect role model behaviour: the manager is a negative role model, does not attach enough value to integrity and does not intervene when there are signs of abuse. It blocks moral development and gives the impression that violations are permissible.
6. Weak operational management: The organisation is not capable of identifying violations, adequately intervening or consistently sanctioning them. Administrative organisation and internal control are weak and ethical standards and values are not sufficiently embedded in daily practices.
7. Results-driven: There is an intense desire to succeed, no matter how. Unethical behaviour then concerns an effective way of achieving goals and may be necessary to secure one’s own position or that of the organisation.
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1. Machtsafstand: Groot verschil in gepercipieerde macht tussen (groepen van) personen. Invloed is sterk geconcentreerd en machtshebbers oefenen druk uit op medewerkers om doelen te bereiken waarbij geen tegenspraak wordt geduld.
2. Isolement: Een organisatieonderdeel functioneert fysiek, emotioneel of sociaal gescheiden van andere organisatieonderdelen. Groepsnormen kunnen afglijden en krijgen navolging in gedrag door beperkt aanwezige correctiemechanismen uit de omgeving.
3. Geheimhoudingsconstructies: Actoren die bij een schending betrokken zijn, gebruiken de gebrekkige openheid en transparantie om niet-integere handelingen te verbergen en de schijn daarvan te vermijden. Informatie wordt zeer beperkt gedeeld.
4. Ring of silence: Men heeft kennis of signalen over schendingen, maar schermt dit af voor andere medewerkers. De beperkte ruimte voor discussie of kritische vragen maakt dat (moreel) gevoelige onderwerpen en conflicten in de regel worden vermeden.
5. Verkeerd voorbeeldgedrag: Leidinggevende geldt als negatief rolmodel, hecht onvoldoende waarde aan integriteit en grijpt niet in bij (signalen van) misstanden. Het blokkeert de morele ontwikkeling en geeft de indruk dat schendingen zijn gepermitteerd.
6. Zwakke bedrijfsvoering: De organisatie is niet capabel om schendingen te signaleren, om adequaat te interveniëren of deze consequent te sanctioneren. De administratieve organisatie en interne controle zijn zwak en ethische normen en waarde zijn onvoldoende ingebed in de dagelijkse werkwijzen.
7. Resultaatgedrevenheid: Er heerst een intense drang naar succes, ongeacht de manier waarop. Niet-integer gedrag betreft dan een effectieve manier van doelbereiking en kan noodzakelijk zijn om de eigen positie of dat van de organisatie veilig te stellen.
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1. Power distance
Vestia CEO Staal, acting as the sole director of this housing corporation, decided almost everything alone. Because of his intimidating appearance, nobody within Vestia liked to have a deviating view. The almost blind trust in Staal led to supervisors remaining uncritically at a distance and hardly offering him any counterweight. Staal increased his freedom of action by selecting favourable commissioners from his own network, which created a close relationship between controller and controlled. More than once, Vestia under Staal has been characterised as a large one-man business. Power distance implies a large difference in the degree of formal or informal power within the organisation. The casuistry showed that some directors enjoyed an almost blind trust from co-decision-makers and supervisors. Often, a dominant, oppressive and manipulative leadership style is used and critical dissent is not tolerated, which increases their freedom of action within the organisation. This gives room to abuse the power position and force employees to move in a direction that is favourable to them. Under such power conditions, people often do not consider themselves capable of resisting (Hannah et al., 2013).
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1. Machtsafstand
Vestia-topman Staal, fungerend als enig bestuurder bij deze woningcorporatie, besliste vrijwel alles alleen. Door zijn intimiderende voorkomen hield niemand er binnen Vestia er graag een afwijkende visie op na. Het bijna blinde vertrouwen in Staal leidde ertoe dat toezichthouders kritiekloos op afstand bleven en hem amper tegengewicht boden. Staal vergrootte zijn handelingsvrijheid door gunstig gezinde commissarissen uit zijn eigen netwerk te selecteren, waardoor een nauwe verbondenheid ontstond tussen controleur en gecontroleerde. Meermaals is het Vestia onder Staal getypeerd als groot eenmansbedrijf. Machtsafstand impliceert een groot verschil in de mate van formele of informele macht binnen de organisatie. Uit de casuïstiek bleek dat enkele bestuurders een bijna blind vertrouwen genoten van medebeslissers en toezichthouders. Vaak wordt een dominante, onderdrukkende en manipulatieve leiderschapsstijl gehanteerd en wordt kritisch tegengeluid niet geduld, wat hun handelingsvrijheid binnen de organisatie versterkt. Dit geeft ruimte de machtspositie te misbruiken en medewerkers te dwingen een voor hen gunstige richting in te bewegen. Onder dergelijke machtscondities blijkt dat men zich vaak niet capabel acht om zich te verzetten (Hannah et al., 2013).
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2. Isolation
Rabobank’s Libor traders operated in an isolated branch in London. They had little contact with other staff and showed little concern for the rest of the organisation. As long as the money was being made, the traders were not looked after. Due to a combination of lack of knowledge among Rabobank managers at the head office in Utrecht, the complex work processes and poor supervision, this group was able to set up a fraudulent system of interest rate manipulation and thereby benefit themselves. A feeling of ‘we are not looked after’ leads to a stronger mutual identification, the development of group norms and appropriate group behaviour. Involvement in and loyalty to the organisation decrease. The top of the organisation hardly feels responsible for the isolated group and takes its hands off it, as long as no complaints or visible problems arise. The group experiences this as disrespect and feels insufficiently recognised by the top. Such perceptions of injustice increase the likelihood of unethical employee behaviour (Treviño & Weaver, 2003). Because control and supervision are often limited, the chance of correction is limited. This gives room for local management to ignore directives from the top of the organisation.
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2. Isolement
De Libor-handelaren van de Rabobank functioneerden in een geïsoleerde vestiging in Londen. Zij hadden nauwelijks contact met ander personeel en toonden weinig betrokkenheid bij de rest van de organisatie. Zolang het geld werd verdiend, werd er niet naar de handelaren omgekeken. Door een combinatie van kennisgebrek bij Rabobank- managers op het hoofdkantoor in Utrecht, de complexe werkprocessen en een gebrekkig toezicht, was deze groep in staat een frauduleus systeem van rentestandmanipulatie op te stellen en daarmee zichzelf te begunstigen. Een gevoel van ‘naar ons wordt toch niet omgekeken’ leidt tot een sterkere onderlinge identificatie, het ontstaan van eigen groepsnormen en bijpassend groepsgedrag. De betrokkenheid bij en loyaliteit aan de organisatie neemt af. De organisatietop voelt zich nauwelijks verantwoordelijk voor de geïsoleerde groep en trekt de handen ervan af, zolang er geen klachten of zichtbare problemen ontstaan. De groep ervaart dit als disrespect en voelt zich onvoldoende door de top erkend. Dit soort percepties van onrechtvaardigheid vergroot de kans op onethisch werknemersgedrag (Treviño & Weaver, 2003). Doordat controle en toezicht vaak beperkt aanwezig zijn, is de kans op correctie beperkt. Dit geeft ruimte voor het lokale management om richtlijnen vanuit de top van de organisatie te negeren.
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3. Secrecy constructions
A group of civil servants from the Department of Sewerage and Water Management in The Hague had a particular style of bringing their wishes to the attention of well-known contractors. They were happy to be fêted, in exchange for the award of future contracts. The hands-on mentality of these officials and their aversion to paperwork meant that a lot of work was awarded orally to contractors without a quotation in advance. If there were formal requirements for an award, the job was labelled a ‘rush job’, for which the rules were less strict. This created an informal circuit in which half a word was enough. Employees who do not follow the rules very closely have a strong preference for the hidden informal circuit. They circumvent formal control procedures whenever possible and offer little in the way of transparency. They make agreements verbally, they are rarely recorded on paper and they shield them from others within the organisation. The work mentality is hands-on and ad hoc. Crucial information and knowledge are not or only to a very limited extent accessible to others. Information that is released usually turns out to be deliberately unclear, incomplete or partly incorrect. The closed atmosphere and lack of transparency creates room for unethical actions and creates a condition to keep these actions hidden (Kaptein, 2008).
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3. Geheimhoudingsconstructies
Een groep Haagse ambtenaren van de afdeling Riolering en Waterbeheersing hadden een bepaalde stijl voor het onder de aandacht brengen van hun wensen bij bekende aannemers. Zij lieten zich graag fêteren, in ruil voor het gunnen van toekomstige opdrachten. De hands-on mentaliteit van deze ambtenaren en hun afkeer van papierwerk, maakten dat veel werk zonder offerte vooraf onderhands mondeling aan aannemers werd gegund. Werden er formele eisen gesteld aan een gunning, dan werd de klus gelabeld als ‘spoedklus’, waarvoor de regels minder strak waren. Zo ontstond een informeel circuit waarin men onderling aan een half woord genoeg had. Medewerkers die de regels niet zo nauw nemen, hebben een sterke voorkeur voor het verborgen informele circuit. Zij omzeilen waar mogelijk formele controleprocedures en bieden nauwelijks openheid van zaken. Afspraken maken zij veelal mondeling, ze worden zelden op papier vastgelegd en men schermt ze af voor anderen binnen de organisatie. De werkmentaliteit is hands-on en ad hoc. Cruciale informatie en kennis zijn niet of in zeer beperkte mate toegankelijk voor anderen. Informatie die wel wordt vrijgegeven blijkt meestal bewust onduidelijk, incompleet of deels onjuist. De gesloten sfeer en gebrekkige transparantie geeft ruimte voor niet-integere handelingen en schept een conditie om deze handelingen verborgen te kunnen houden (Kaptein, 2008).
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4. Ring of silence
In the ENT department of Utrecht University Medical Centre, an internal closedness prevailed about a number of incidents. This closedness – partly maintained by an authoritarian department manager – meant that issues were not discussed among themselves and conflicts were systematically avoided. People in the department were played off against each other and expected to choose sides under pressure. Doctors only dared to report the state of affairs on the ward anonymously, for fear of reprisals. Doctors who functioned well and spoke out openly about medical errors were removed from the organisation. Due to a lack of openness and failure to call each other to account for behaviour, norms and values shift within the organisational culture. As a result, employees become – consciously or unconsciously – blind to signals of abuse within the organisation. Silence then becomes the norm within the team or department. If violations are suspected, people prefer to stay on the sidelines. If someone does decide to criticise or report an abuse, retaliatory action is taken to scare the others off. Participating in this silent spiral is appreciated and increases the chances of personal success within the organisation. Organisations characterised by strong loyalty, non-intervention and conflict avoidance are therefore characterised in research on corruption as vulnerable (Nelen & Nieuwendijk, 2003).
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4. Ring of silence
Op de afdeling KNO van het Universitair Medisch Centrum Utrecht heerste een interne geslotenheid over een aantal incidenten. Deze geslotenheid – mede in stand gehouden door een autoritaire afdelingsmanager – maakte dat kwesties onderling niet werden besproken en conflicten stelselmatig werden vermeden. Men werd op de afdeling tegen elkaar uitgespeeld en onder druk geacht een kant te kiezen. Artsen durfden enkel anoniem melding te maken van de gang van zaken op de afdeling, dit uit angst voor represailles. Goed functionerende artsen, die zich openlijk uitspraken over medische fouten, werden de organisatie uitgewerkt. Door een gebrek aan openheid en elkaar niet aanspreken op gedrag verschuiven normen en waarden binnen de organisatiecultuur. Daardoor raken medewerkers – bewust of onbewust – blind voor signalen van misstanden binnen de organisatie. Zwijgen geldt dan als de norm binnen het team of de afdeling. Bij vermoedens van schendingen, houdt men zich liever afzijdig. Indien iemand toch besluit kritiek te leveren of een misstand te melden worden er vergeldingsacties uitgevoerd om de anderen af te schrikken. Meebewegen in deze silent spiral wordt gewaardeerd en maakt de kans op persoonlijk succes binnen de organisatie groter. Organisaties gekenmerkt door een sterke loyaliteit, non-interventie en conflictvermijding worden in onderzoek naar corruptie dan ook getypeerd als kwetsbaar (Nelen & Nieuwendijk, 2003).
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5. Wrong example
At the National Health Care Authority (NZa), Arthur Gotlieb was for years the victim of bullying, exclusion, neglect and humiliation. Several supervisors, some of whom rose to management positions, exhibited this behaviour. This assumes that the behaviour was transferred to others and that his treatment became part of the culture in the department. Even the NZa top management, aware of the signals of conflict of interest and non-compliance with privacy standards that Gotlieb was giving off, saw him more as a problem and did not offer a helping hand. The battle Gotlieb faced was one that could not be won. After his suicide, his notes were incorporated into a book. When violations occur on a large scale, managers often acted as negative role models or adopted a passive leadership style, which did not discourage improper organisational behaviour. In such a case, the top ignores signals of wrongdoing or excludes employees. Top management does not set a good example of moral conduct, creating a culture in which integrity is seen as something of secondary importance, a view and attitude easily adopted by employees. This can lead to employees underestimating the importance of regulations or losing sight of the customer’s interests. Unethical leadership leads to employees being more likely to violate regulations (e.g. Brown & Mitchell, 2010).
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5. Verkeerd voorbeeldgedrag
Bij de Nationale Zorgautoriteit (NZa) was Arthur Gotlieb jarenlang het slachtoffer van pesterijen, uitsluiting, verwaarlozing en vernedering. Diverse leidinggevenden, onder wie sommige zijn doorgegroeid naar managementposities, vertoonden dit gedrag. Dit veronderstelt dat het gedrag werd overgedragen op anderen en dat zijn behandeling onderdeel werd van de cultuur op de afdeling. Ook de top van de NZa, op de hoogte van de signalen van belangenverstrengeling en niet in acht genomen privacynormen die Gotlieb afgaf, zag hem meer als probleem en bood geen helpende hand. De strijd die Gotlieb aanging was er een die niet te winnen was. Na zijn zelfdoding werden zijn aantekeningen verwerkt in een boek. Wanneer schendingen op grote schaal voorkomen golden managers vaak als negatieve rolmodellen of hanteerden zij een passieve leiderschapsstijl, waardoor onoorbaar organisatiegedrag niet werd afgeremd. In zo’n geval negeert de top signalen van misstanden of sluit hij medewerkers buiten. De top geeft niet het juiste voorbeeld van moreel handelen, waarmee hij een cultuur creëert waarin integriteit wordt ervaren als iets van ondergeschikt belang, een zienswijze en houding die gemakkelijk wordt overgenomen door medewerkers. Dit kan ertoe leiden dat medewerkers het belang van regelgeving onderschatten of het klantbelang uit het oog verliezen. Onethisch leiderschap leidt ertoe dat medewerkers sneller schendingsgedrag zullen vertonen (o.a. Brown & Mitchell, 2010).
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6. Weak business operations
Imtech barely supervised individual organisational units, which meant that the German and Polish branches of the company were able to commit fraud unnoticed and make huge losses. This ultimately resulted in the bankruptcy of the entire Group. The top management, which had previously decided that the company did not need its own internal audit department, took the decision not to have its figures audited by the external auditor. Imtech left the management of thousands of projects entirely to local managers. Partly as a result of this the organisation’s management had no idea where the money was coming from, what it was being spent on and what risks were being run. The policies were in order: there was supervision, an integrity policy, a whistleblower regulation, code of conduct, confidential advisor and so on. But in some of the cases investigated, these ‘paper’ measures were not followed up in practice. There is a lack of critical internal control and the administrative organisation is of a low quality level. Signals of violations are therefore not noticed, or are noticed too late. Unclear delineation of duties, powers and responsibilities leads to employees feeling a limited sense of responsibility and only a few take the initiative to report a suspicious situation. Violations are reported less quickly because it is unclear what effect this has and to what extent the reporter is protected after making the report (Read & Rama, 2003).
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6. Zwakke bedrijfsvoering
Imtech hield amper toezicht op losse organisatieonderdelen, waardoor Duitse en Poolse takken van het bedrijf ongemerkt fraudeerden en grote verliezen konden draaien. Dit resulteerde uiteindelijk in een faillissement van het hele concern. Het topmanagement, dat eerder al besloot dat het bedrijf geen eigen interne accountantsdienst nodig had, nam het besluit om cijfers niet meer te laten controleren door de externe accountant. Imtech liet het management van duizenden projecten volledig over aan lokale managers. Mede daardoor had de organisatietop geen enkel idee waar het geld vandaan kwam, waar het aan werd uitgegeven en welke risico’s er werden gelopen. Beleidsmatig is men op orde: er was sprake van toezicht, integriteitsbeleid, een klokkenluidersregeling, gedragscode, een vertrouwenspersoon en zo meer. Maar in enkele onderzochte gevallen kregen deze ‘papieren’ maatregelen in de praktijk geen navolging. Het ontbreekt aan kritische interne controle en de administratieve organisatie is van laag kwalitatief niveau. Signalen van schendingen worden daardoor niet of in een te laat stadium opgemerkt. Onduidelijk afgebakende taken, bevoegdheden en verantwoordelijkheden leiden ertoe dat medewerkers zich beperkt verantwoordelijk voelen en slechts enkele het initiatief nemen om een verdachte situatie te melden. Schendingen worden minder snel gemeld omdat onduidelijk is tot welk effect dit leidt en in hoeverre de melder beschermd wordt na het bekendmaken ervan (Read & Rama, 2003).
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7. Result-driven
FC Twente – under the reign of chairman Munsterman – saw the unexpectedly won championship in 2010 as a new reality, in which the club would become a structural part of the European and national football top. The pressure was high to keep performing above par and opportunistic goals went hand in hand with heavy investments and risky spending. Difficult questions and dissatisfaction about the financial state of affairs were shrugged off. Critical minds were accused of a lack of courage and vision. There was only one road and that was the road to success. Solid business management was subordinate to this. Fraudulent activities proved necessary to hide the club’s shaky financial position. A one-sided focus on the result – such as sharp targets, high bonuses and status – leads to extreme competitiveness and performance pressure within organisations. Unrealistically high expectations and ambitions lead to short-term thinking and opportunistic behaviour. The organisation (top) often has narcissistic characteristics, which, according to Duchon and Drake (2009), contributed to the downfall of American global players such as Arthur Andersen, Salomon Brothers and Enron. Success is mainly attributed to the qualities of employees, which reinforces the feeling of exceptionality and superiority. Often, this leads to self-aggrandisement and a feeling of superiority at the top, which carries over to the work floor. Unethical actions are rationalised as necessary to strengthen one’s own position or that of the organisation. It has thus become part of the survival strategy of (employees of) the organisation. Red flags to promote moral development Information on the red flags present can be used to strengthen the moral development of employees within the organisation. Teams on location can enter into a dialogue about how they deal with personal interests and organisational interests. Commercial institutions can organise sessions in which their own result focus is evaluated. Managers within organisations can be trained in their role as role models. The chance of corruption and fraud is greatly reduced when a culture of moral dialogue is created. This is created when employees and managers find it normal to determine together what the right decision is in work situations where moral issues arise. By discussing integrity risks with each other in the form of a choice issue, group pressure is created against abuse and blurring of standards. Through regular discussion of ethical dilemmas, people in the organisation are trained to make the right decisions. This can be set up as follows: violations that have occurred in similar organisations are elaborated in a choice dilemma. In separate team meetings, employees are asked what they think is the right course of action. Choosing a situation from another organisation, such as correct invoicing, gifts from customers, private work during office hours, makes the discussion less threatening and yet appealing. Specific groups can be chosen, such as executives or officials who perform vulnerable functions. In this way, it becomes clear that obvious ways of thinking and acting are judged very differently by others. This makes cultural differences visible and teaches people to look at what is usual in a different way. Learning to look at things differently leads to different behaviour.
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7. Resultaatgedrevenheid
FC Twente – onder bewind van voorzitter Munsterman – zag het onverwacht behaalde kampioenschap van 2010 als een nieuwe realiteit, waarin de club structureel deel uit zou gaan maken van de Europese en nationale voetbaltop. De druk was hoog om bovenmatig te blijven presteren en opportunistische doelstellingen gingen gepaard met forse investeringen en risicovolle uitgaven. Lastige vragen en onvrede over de financiële gang van zaken werden weggehoond. Kritische geesten werd een gebrek aan durf en visie verweten. Er was maar één weg en dat was de weg naar succes. Een solide bedrijfsvoering was daaraan ondergeschikt gemaakt. Frauduleuze activiteiten bleken nodig om de wankelende financiële positie van de club te verbergen. Een eenzijdige focus op het resultaat – zoals scherpe targets, hoge bonussen en status – leidt tot extreme competitiviteit en prestatiedruk binnen organisaties. Onrealistisch hoge verwachtingen en ambities leiden tot kortetermijndenken en opportunistisch handelen. De organisatie(top) bezit dan vaak narcistische kenmerken, volgens Duchon en Drake (2009) mede oorzakelijk voor de val van Amerikaanse wereldspelers als Arthur Andersen, Salomon Brothers en Enron. Succes wordt hoofdzakelijk toegeschreven aan de kwaliteiten van medewerkers, wat het gevoel van uitzonderlijkheid en superioriteit versterkt. Vaak leidt dit bij de top tot zelfoverschatting en een gevoel van superioriteit, dat doorwerkt richting de werkvloer. Niet-integere handelingen worden weggerationaliseerd als noodzakelijk om de eigen positie of die van de organisatie te versterken. Het is daarmee een onderdeel geworden van de overlevingsstrategie van (medewerkers van) de organisatie. Red flags ter bevordering van morele ontwikkeling Informatie over aanwezige red flags kan worden gebruikt om de morele ontwikkeling van medewerkers binnen de eigen organisatie te versterken. Teams op locatie kunnen de dialoog aangaan over hoe zij met persoonlijke belangen en organisatiebelangen omgaan. Commerciële instellingen kunnen sessies organiseren waarin de eigen resultaatsfocus wordt geëvalueerd. Managers binnen organisaties kunnen getraind worden in hun voorbeeldrol. De kans op corruptie en fraude wordt sterk verminderd wanneer een cultuur van morele dialoog ontstaat. Die ontstaat als medewerkers en leidinggevenden het normaal vinden om met elkaar te bepalen wat een juiste beslissing is in werksituaties waarin morele kwesties spelen. Door integriteitrisico’s in de vorm van een keuzevraagstuk met elkaar te bespreken, ontstaat groepsdruk tegen misbruik en normvervaging. Door regelmatige bespreking van ethische dilemma’s raken mensen in de organisatie getraind in het nemen van de juiste beslissingen. Dat kun je als volgt opzetten: schendingen die zich bij vergelijkbare organisaties hebben voorgedaan worden uitgewerkt in een keuzedilemma. In aparte teamvergaderingen wordt aan medewerkers gevraagd wat volgens hen de juiste handelwijze is. Het kiezen van een situatie uit een andere organisatie, zoals juiste facturering, cadeaus van klanten, privéwerkzaamheden in kantoortijd, maken de bespreking ervan minder bedreigend en toch aansprekend. Daarbij kan voor specifieke groepen zoals leidinggevenden of functionarissen die kwetsbare functies uitoefenen gekozen worden. Zo wordt duidelijk dat vanzelfsprekende denk- en handelswijzen door anderen heel anders worden beoordeeld. Hierdoor worden cultuurverschillen zichtbaar, waardoor men heel anders leert aankijken tegen dat wat gebruikelijk is. Anders leren kijken leidt tot ander gedrag.
8 System Failure: The Boeing Crashes | Fault Lines
16 okt. 2019
When a commercial airplane crashed off the coast of Indonesia in October 2018, global aviation authorities were shocked.
The aircraft was a 737 MAX, one of the newest models of US manufacturer Boeing.
And then when a second MAX dropped out of the sky in Ethiopia in March 2019, investigators said they believed that software on the airplane played a role in both crashes.
With 346 people dead and the MAX now grounded, aviation authorities around the globe have asked what went wrong, how the US certified the aircraft in 2017 and how oversight failed. Families and investigators are still searching for answers.
A former Boeing engineer who worked on the plane, and asked to remain anonymous, recalls that the design and testing of the 737 MAX took place amid immense commercial pressure.
“Cost pressure and time. Time pressure was the biggest impact, biggest driver … [There was] immense pressure on getting the airplane to market as soon as possible,” he told Fault Lines.
“On the 737 MAX there was constant pressure to not change anything. From a cost perspective, change costs money. The business side drives the culture.”
Captain Dennis Tajer from the Allied Pilots Association believes “the system failed”.
“The system is Boeing, the FAA, other oversight areas from within those groups,” he says. “What’s the measure on that judgment? These crashes. It’s that simple: the system failed. It failed our passengers, it failed the globe.”
Fault Lines traces what led to the two plane crashes and asks if US aviation regulators have allowed the industry too much control over safety.
“System Failure: The Boeing Crashes | Fault Lines” is a documentary by Al Jazeera English that examines the causes of two crashes involving the 737 MAX, which occurred in October 2018 and March 2019, killing a total of 346 people. Here are some of the key points from the documentary:
Design flaws in the 737 MAX: The documentary explores how Boeing rushed to develop the 737 MAX to compete with rival Airbus, resulting in a flawed design of the aircraft’s software and hardware.
The role of the Federal Aviation Administration (FAA): The FAA, which is responsible for regulating and certifying new aircraft designs in the United States, is criticized for delegating some of its responsibilities to Boeing, leading to a conflict of interest that compromised safety.
Lack of transparency and accountability: The documentary reveals how Boeing failed to disclose information about the 737 MAX’s design flaws to pilots and airlines, and how the company resisted calls for a grounding of the aircraft following the first crash.
The human toll: The documentary highlights the stories of the victims of the two crashes, including the families who lost loved ones and the pilots who were unable to prevent the accidents despite their best efforts.
Overall, “System Failure: The Boeing Crashes | Fault Lines” presents a comprehensive and critical analysis of the factors that led to the 737 MAX crashes, calling for greater transparency, accountability, and safety measures in the aviation industry.
The key points associated with the topic of “7 ‘red flags’ voor fraude en corruptie” as referenced from various sources are:
Lack of ethical leadership: Ethical and unethical leadership can influence the occurrence of fraud and corruption within organizations. Unethical leadership behaviors such as abusive supervision, lack of integrity, and poor role modeling can increase the risk of fraud and corruption (Brown & Mitchell, 2010; Hannah et al., 2013).
Organizational culture: The ethical culture of an organization, including its values, norms, and practices, can impact the likelihood of fraud and corruption. An unhealthy organizational culture that tolerates or even encourages unethical behavior can be a red flag for potential fraud and corruption (Duchon & Drake, 2009; Kaptein, 2008; Schein, 1992; Straathof, 2009).
Lack of proper documentation or incomplete records: Insufficient or incomplete documentation and records can indicate a higher risk of fraud and corruption. Lack of transparency and accountability in financial transactions and records can be a red flag for potential fraudulent activities (Nelen & Nieuwendijk, 2003).
Unexplained or irregular financial transactions: Unusual or irregular financial transactions, such as unexplained increases in expenses or revenues, discrepancies in financial records, or frequent and large cash transactions, can signal potential fraud and corruption.
Non-compliance with internal controls or policies: Failure to comply with internal controls, policies, and procedures, such as bypassing approval processes or overriding system controls, can indicate a higher risk of fraud and corruption.
Conflicts of interest: Conflicts of interest, such as employees or executives engaging in activities that may compromise their objectivity or integrity, can be a red flag for potential fraud and corruption.
Whistleblower complaints or allegations: Whistleblower complaints or allegations of fraud or corruption made by employees or other stakeholders should be taken seriously and investigated thoroughly, as they can indicate potential fraudulent activities (Read & Rama, 2003).
Please note that these are general examples and specific red flags for fraud and corruption may vary depending on the context, industry, and jurisdiction. It’s always recommended to seek professional advice from legal, financial, or compliance experts for accurate identification and mitigation of fraud and corruption risks.
In a concise manner:
- Lack of proper documentation or incomplete records.
- Unexplained or irregular financial transactions.
- Non-compliance with internal controls or policies.
- Conflicts of interest.
- Unusual lifestyle changes or disproportionate assets.
- Lack of segregation of duties.
- Whistleblower complaints or allegations.
■Referenties• Brown, M. E., & Mitchell, M. S. (2010). Ethical and unethical leadership: Exploring new avenues for future research. Business Ethics Quarterly, 20, pp. 583-616. Geraadpleegd op 12 oktober 2016, van https://www.cambridge.org/core/journals/business-ethics-quarterly/article/ethical-and-unethical-leadership-exploring-new-avenues-for-future-research/073D6C535E7D86680F9C15E3E95C9E9D
• Duchon, D., & Drake, B. (2009). Organizational Narcissism and Virtuous Behavior. Journal of Business Ethics, 85, pp.301-308.
Hannah, S. T., Schaubroeck, J. M., Peng, A. C., Lord, R. G., Treviño, L. K., Kozlowski, S. W. J., Avolio, B. J., Dimotakis, N., & Doty, J. (2013). Joint influences of individual and work unit abusive supervision on ethical intentions and behaviors: A moderated mediation model. Journal of Applied Psychology, 98, pp. 579–592.
Kaptein, M. (2008). Developing and Testing a Measure for the Ethical Culture of Organizations: The Corporate Ethical Virtues Model. Journal of Organizational Behavior, 29, pp. 923-947
• Nelen, H., & Nieuwendijk, A. (2003). Geen ABC. Analyse van rijksrecherche-onderzoeken naar ambtelijke en bestuurlijke corruptie. Den Haag: Boom
• Read, W. J., & Rama, D. V. (2003). Whistle-blowing to internal auditors. Managerial Auditing Journal, 18, 354-362. Geraadpleegd op 12 oktober 2016, van http://www.emeraldinsight.com/doi/abs/10.1108/02686900310476828
Schein, E. H. (1992). Organizational Leadership and culture. San Francisco: Jossey-Bass
Straathof, A. J. M. (2009). Zoeken naar de kern van cultuurverandering. Delft: Eburon
Treviño, L. K. & Weaver, G. R. (2003). Managing ethics in business organizations: social scientific perspective. Stanford: Stanford Business Books
